By Shuli Ren

When we look at Latin American stocks, J.P. Morgan advises that we focus on value stocks and those that have exposure to the U.S. economic recovery.

As such, Mexico, U.S.’s largest trading partner in the region, is a Buy, according to J.P. Morgan:

We are OW Mexico based on (1) strong forecast economic growth acceleration to 3.4% in 2014E from 1.4% in 2013E; (2) estimated domestic FX appreciation (vs. the USD) through 2014 year-end (MXN12.25 /USD); (3) enhanced cost competiveness and high sustainable growth outlook – the agenda on reforms has advanced; and (4) leverage to an expected US manufacturing rebound.

Mexico was upgraded by S&P from BBB to BBB+ with stable outlook upon the passing of its energy reform bill today. The iShares MSCI Mexico Capped ETF (EWW) is up 1% in the morning.

Here is the list of stocks J. P. Morgan likes that has ADRs in the US and strong exposure to U.S. economic recovery: Vale (VALE), SQM (SQM), Copa (CPA), and Avianca (AVH).

About Emerging Markets Daily

Emerging markets have been synonymous with growth, but the outlook for individual nations is constantly changing. Countries from Brazil and Russia to Turkey face challenges including infrastructure bottlenecks, credit issues and political shifts. Barrons.com’s Emerging Markets Daily blog analyzes news, data and research out of emerging markets beyond Asia to help readers navigate the investment landscape.

Barron’s veteran Dimitra DeFotis has been blogging about emerging market investing since traveling to India and Turkey. Based in New York, she previously wrote for Barron’s about U.S. equity investing, including cover stories and roundtables on energy themes. Dimitra was among the first digital journalists at the Chicago Tribune and started her career as a police reporter at the Daily Herald in the Chicago suburbs. Dimitra holds degrees from the University of Illinois and Columbia University, where she was a Knight-Bagehot Fellow in the business and journalism schools. She studies multiple languages and photography.